Apple has issued a revenue warning for the second quarter of 2020, citing the impact of the coronavirus outbreak. The company anticipates that worldwide iPhone supply will be temporarily constrained and demand in China will be reduced. This announcement reflects the broader economic uncertainties created by the ongoing health crisis.
Apple has announced that it does not expect to meet its revenue guidance for the second quarter of 2020 due to the ongoing coronavirus outbreak. The company had previously projected revenue between $63 billion and $67 billion.
In a statement, Apple explained that iPhone production worldwide will be temporarily constrained. While manufacturing partner sites are located outside of Hubei province, and all have reopened, production is ramping up more slowly than anticipated. The health and well-being of every person who helps make these products is the top priority, and the company is working in close consultation with public health experts and government to take every precaution to protect its teams.
Furthermore, demand for Apple products within China has been affected. All Apple stores in China have been closed, and while some have begun to reopen, they are operating at reduced hours and with very few customers. Stores that remain open have implemented strict health protocols.
Apple also noted that its corporate offices and contact centers in China are open and that it is continuing to monitor the situation closely. The company will provide further updates as the situation evolves.
The revenue warning highlights the significant impact that the coronavirus outbreak is having on global supply chains and consumer demand. Other companies in various sectors have also reported similar disruptions and financial impacts.